July 30 (Bloomberg) -- Hong Kong stocks rose, with the
benchmark index gaining for a third day, as European Central
Bank President Mario Draghi sought consensus among policy makers
for a plan to ease borrowing costs for Spain and Italy.

“The ECB is trying to do everything to help markets,”
Binay Chandgothia, a Hong Kong-based portfolio manager at
Principal Global Investors, which manages $250 billion globally,
told Bloomberg Television. “If they come out and reinforce what
they said last week, it might bring more confidence back into
the markets.”

The Hang Seng Index advanced 1.6 percent to 19,585.40 at
the close of trading in Hong Kong, with all but four shares
gaining. The gauge rose 2 percent on July 27, its biggest
advance in almost a month, after Draghi said policy makers will
do whatever is needed to preserve the 17-nation euro.

Leaders in Berlin, Paris and Rome have backed Draghi’s
approach to combat the sovereign-debt crisis before ECB policy
makers convene on Aug. 2.

Political Backing

“There is a strong political and financial will for the
euro,” said George Boubouras, Melbourne-based head of
investment strategy at UBS AG’s Australian unit. The Swiss bank
has about $1.5 trillion in assets under management. “Actions
that address the EU challenges will create the opportunity for a
sustainable rally ahead.”

Companies that do business in Europe advanced. Hutchison
Whampoa gained 1.3 percent to HK$69.50. Cosco Pacific Ltd.,
which operates a port in Greece, increased 2.5 percent to
HK$10.68. Esprit Holdings Ltd., a clothier that counts Europe as
its biggest market, climbed 3.6 percent to HK$9.44.

HSBC rose 1.7 percent to HK$65.25. The London-based lender
reported after Hong Kong’s market closed that first-half net
income fell to $8.4 billion from $9.22 billion a year earlier.
That fell short of the $9 billion average of 10 analyst
estimates compiled by Bloomberg.

The benchmark Hang Seng Index fell 9.7 percent from this
year’s high in February through today on signs Europe’s debt
crisis is worsening while growth slows in China and the U.S. The
drop reduced the value of shares on the gauge to 10.3 times
estimated earnings on average, compared with 13.5 times for the
Standard & Poor’s 500 Index and 11 times for Stoxx Europe 600
Index.

Among stocks that fell today, Guangzhou R&F slipped 4.1
percent to HK$9.76 after the property developer said it expects
a “significant” decline in first-half profit.

China Rongsheng Heavy Industries Group Holdings Ltd., the
nation’s largest private shipbuilder, fell 16.4 percent to
HK$1.17, its lowest close since its listing in 2010. The company
said profit will fall after a sharp decline in orders. Also, the
U.S. Securities and Exchange Commission filed a complaint
accusing a company owned by Chairman Zhang Zhi Rong of insider
trading.

China Cosco Holdings Co. Ltd., the country’s largest
shipowner, fell 3.7 percent to HK$3.17, its lowest close in more
than ten months, after saying its preliminary first-half loss
widened more than 50 percent as a ship glut weakened rates.